Entrepreneurship Under Severe Adverse Conditions: The Northwest Mexican Case
Review of Business & Finance Case Studies, Vol. 2, No. 1, pp. 89-101, 2011
13 Pages Posted: 5 Jan 2012
Date Written: 2011
Abstract
We analyzed the performance of marginalized subsistence microenterprises, through dichotomous logistic regressions by maximum likelihood. We tested 52,224 hypotheses, trying to find behavior patterns on microenterprises. The results show that performance is the result of a combination of factors related to the owners and the decisions made by them on their entrepreneurial environment, if measured as an approximation of the success/failure ratio. It is possible to know many of these variables before the business starts. In addition, some variables did not show the expected relation; this suggests that these projects deserve a different treatment than the formal micro and small enterprise. These factors may well influence the design of microenterprises’ assistance programs, micro loans and the establishment of commercial areas that allow an "enhanced" micro entrepreneur profile.
Keywords: Small business, marginalization, performance, logit, maximum likelihood
JEL Classification: C35, D12, D13, D14
Suggested Citation: Suggested Citation